Amid volatile economic conditions in the world, India has got a big shot in the arm on this front. India’s foreign exchange reserves rose by $394 million to $631.92 billion in the week ended March 4 led by a sharp jump in foreign currency assets, the Reserve Bank of India data showed. The forex reserves had declined by $1.425 billion in the previous week.
The foreign currency assets, which is the largest component of the forex reserves, jumped by $634 million to $565.466 billion during the week under review, according to the RBI’s weekly statistical supplement. The foreign currency assets had dropped by $2.228 billion in the week ended February 25.
Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK’s Pound Sterling, and Japanese Yen held in the foreign exchange reserves. All other components of the forex reserves posted declines during the week under review.
The value of gold reserves dropped by $147 million to $42.32 billion, the RBI data showed. The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) declined by $59 million to $18.981 billion. India’s reserve position in the IMF dropped by $34 million to $5.153 billion.